Deciding Between Debt Management And Debt Settlement

Plenty of consumers are carrying significant amounts of debt and are increasingly exploring their debt relief options. There are numerous credit card debt solutions out there, but the most common choices range from bankruptcy, debt settlement, or debt management depending on the severity of the debt situation.

Bankruptcy is an extreme measure and should be the last resort only when all other options don’t appear to be sufficient enough to eliminate your debt. This is because the consequences of bankruptcy are damaging to your credit score and last a long time. Some other less severe solutions that should be considered are debt management and debt settlement. Each of these solutions has its pros and cons and will be appropriate for different situations.

In general, debt settlement is designed for debt problems that fall just short of bankruptcy. Debt management on the other hand is a more conservative choice for those whose finances are nearly manageable. Only modest intervention is required to move forward with paying down their debt.

Depending on your debt situation, one debt relief option may be better than another. A debt scenario that would be best handled with debt management would be one that can be characterized by these aspects:

* The debt is not too overwhelming and is manageable, but it is still piling up

* The various due dates and payments each month are becoming challenging to organize and get a handle on

* You would greatly benefit from some moderate help with your interest rates

In contrast, here are some of the typical scenarios that are best handled by debt settlement:

* Only minimum monthly payments are being made on high interest rate accounts

* The total monthly payments toward unsecured debt are simply too large; significantly lower payments are an absolute necessity to make any headway

Another factor to consider in analyzing the choice among debt solutions is to consider the amount and length of damage to your credit that will likely result. Debt settlement will do more severe damage to your credit, but it’s normally of significantly shorter duration. Bankruptcy, however, will do severe credit score damage that may last 7 to 10 years, or possibly even longer.

About the author: Jackson Roberts is an experienced debt analyst for a reputable Uk marriage visa credit card debt relief company. He also regularly writes about Uk marriage visa debt management advice.

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